03-04-2018, 09:35 PM
Interesting knowledge has been added from the past few posts.
From what i see on the link: https://www.openelectricitymarket.sg/abo...sting-data
Currently the electrical companies are selling to SP powers at a price of about $0.15-$0.15857/Kwh based on the vesting data. To hyflux, it seems at this level, power generation is not profitable to them. This is because the marginal cost of their plant is likely more expensive than the LRMC of the bigger players.
With the liberalization of the electrical markets starting with Jurong, Hyflux is pricing to sell its electricity at $0.188 Kwh while Keppel Electric is pricing theirs at $0.165/Kwh.
Senoko, one of the largest Genco, in Singapore is selling at 5% off the market tariff of $0.2156 Kwh, this means about $0.205 Kwh. Adding a free 3 month to its 24 months contract, this means approximately $0.179 Kwh based on existing tariff rates. Geneco Co., which is another large Genco is selling at $0.1780 Kwh.
All in all, it seems Hyflux is going to have a tough competition when the market liberalizes. It is a small-medium player in the market with its 400MW plant. The bigger players have plants generating up to 3,000MW. There are many larger electrical players such as Geneco, Senoko, Keppel , Tuaspower and even Pacificlight. And from the prices these players are selling to Jurong residents, their offered electricity price is cheaper than Hyflux's. It also shows that they have a lower cost structure than hyflux's. After all, Hyflux had obtained the Tuas plant by positioning it as a desalination plant, bidded to sell water at a very low rate and selling the remaining electricity in a bid to cover cost. it is very likely why the Tuas project is making losses is because the revenue from water operations is also below the desalination cost.
If Hyflux could adjust the price of the water it is selling upwards, the whole Tuas spring project may turn profitable
<not vested in any Hyflux instruments any longer>
From what i see on the link: https://www.openelectricitymarket.sg/abo...sting-data
Currently the electrical companies are selling to SP powers at a price of about $0.15-$0.15857/Kwh based on the vesting data. To hyflux, it seems at this level, power generation is not profitable to them. This is because the marginal cost of their plant is likely more expensive than the LRMC of the bigger players.
With the liberalization of the electrical markets starting with Jurong, Hyflux is pricing to sell its electricity at $0.188 Kwh while Keppel Electric is pricing theirs at $0.165/Kwh.
Senoko, one of the largest Genco, in Singapore is selling at 5% off the market tariff of $0.2156 Kwh, this means about $0.205 Kwh. Adding a free 3 month to its 24 months contract, this means approximately $0.179 Kwh based on existing tariff rates. Geneco Co., which is another large Genco is selling at $0.1780 Kwh.
All in all, it seems Hyflux is going to have a tough competition when the market liberalizes. It is a small-medium player in the market with its 400MW plant. The bigger players have plants generating up to 3,000MW. There are many larger electrical players such as Geneco, Senoko, Keppel , Tuaspower and even Pacificlight. And from the prices these players are selling to Jurong residents, their offered electricity price is cheaper than Hyflux's. It also shows that they have a lower cost structure than hyflux's. After all, Hyflux had obtained the Tuas plant by positioning it as a desalination plant, bidded to sell water at a very low rate and selling the remaining electricity in a bid to cover cost. it is very likely why the Tuas project is making losses is because the revenue from water operations is also below the desalination cost.
If Hyflux could adjust the price of the water it is selling upwards, the whole Tuas spring project may turn profitable
<not vested in any Hyflux instruments any longer>